Introduction
In recent years, the gig economy has emerged as a powerful force, fundamentally transforming Malaysia’s labour market. Driven by technological innovation, rising living costs, and a growing demand for flexible work arrangements, the sector has experienced unprecedented growth across various industries.
However, while the gig economy offers flexibility and new income opportunities, it also potentially leaves workers vulnerable to risks.
In Malaysia, gig workers have historically been excluded from protections that traditional employees receive, such as guaranteed minimum wage, statute-mandated contributions to social security and retirement schemes, access to health insurance, and even protection against unfair dismissal.
Many gig workers are bound by unstable, short-term contracts, exposing them to delayed payments, withheld earnings, and sudden contract terminations without recourse
The case of Loh Guet Ching v Minister of Human Resources [2022] MLJU 2503 (“the Grab Case”) highlights the challenges faced by gig workers in Malaysia in respect of the lack of protection against unfair dismissals.
In this case, a former Grab driver, applied for judicial review to challenge the decision of the Minister of Human Resources declining to refer her representation of unfair dismissal against “Grab” to the Industrial Court (prior to the amendments to the Industrial Relation Act 1967 ).
The judicial review application was dismissed by the High Court, and on appeal, the Court of Appeal upheld the High Court’s decision — ruling that Grab drivers do not fall within the category of “workman” as defined under section 2 of the Industrial Relations Act 1967 and therefore cannot file a representation for unfair dismissal. The Federal Court later dismissed her application for leave to appeal to appeal to the Federal Court.
